[Ghana] Gold Fields seeks to extend lifespan of mine with $1.4 billion investment

Diversified producer of precious metals Gold Fields has announced it is investing $ 1.4 billion to extend the lifespan of the Damang mine in Ghana from 2017 to 2024.

This investment will enhance the group's presence in one of its key operating regions and will result in significant social benefits for Ghana, including the creation and preservation of 1 850 direct jobs.

Over the period, a total of 165 metric tones will be mined, with 32Mt processed.

Mining and processing costs are estimated to average $3,60 per tonne and $16,25 per tonne respectively.

The Reinvestment Plan is based on mineral resource models that have been updated in 2016 and extensively reviewed both internally and by external consultants, namely SRK, Optiro and Rowley Geological Services (RGS).

Since operations at Damang commenced in 1997, the mine has produced in excess of 4.0Moz, sourced from multiple open pits. Production from the Damang Pit Cutback (DPCB) came to an end in 2013, and since then mining has focused on the margins of the Damang pit (the Huni, Juno and Saddle areas) as well as lower grade satellite deposits.

The decline in production since 2013 has been exacerbated by variations in grade in the northern and southern extremities of the DPCB and the satellite pits where grades have been lower than expected. Consequently, a strategic review of Damang commenced in 2015 which identified that Gold Fields should return to mining the higher grade core of the main Damang orebody.

Gold Fields is an unhedged, globa firm with eight operating mines in Australia, Ghana, Peru and South Africa with attributable annual gold production of approximately 2 million ounces.

www.goldfields.com